HLIT 10-Q

Harmonic Inc. (HLIT)

10-Q 2026-08-17 For: 2026-07-03

View Original

Added on August 17, 2026


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.001 par value	HLIT	The Nasdaq Global Select Market


Large accelerated filer	☒	Accelerated Filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


PART I

	ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)	3
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	28
	ITEM 4. CONTROLS AND PROCEDURES	28

PART II

	ITEM 1. LEGAL PROCEEDINGS	29
	ITEM 1A. RISK FACTORS	29
	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	49
	ITEM 5. OTHER INFORMATION	49
	ITEM 6. EXHIBITS	50

SIGNATURES		51


	July 3, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	231,862	$	124,105
Accounts receivable, net of allowances for credit losses of $136 and $227 as of July 3, 2026 and December 31, 2025, respectively		89,906		85,935
Inventories		66,473		47,840
Prepaid expenses and other current assets		28,948		12,530
Assets held for sale		—		223,961
Total current assets		417,189		494,371
Property and equipment, net		23,478		25,648
Operating lease right-of-use assets		13,142		13,687
Goodwill		61,092		60,900
Deferred income taxes, net		99,425		104,043
Other non-current assets		18,319		19,834
Total assets	$	632,645	$	718,483
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	2,944	$	2,944
Accounts payable		39,263		23,093
Deferred revenue		20,775		31,519
Operating lease liabilities		5,988		6,433
Other current liabilities		67,962		48,288
Liabilities to be disposed of		—		85,671
Total current liabilities		136,932		197,948
Long-term debt		107,667		109,140
Operating lease liabilities, non-current		13,524		14,664
Other non-current liabilities		14,176		13,485
Total liabilities		272,299		335,237
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding		—		—
Common stock, $0.001 par value, 150,000 shares authorized; 109,024 and 111,186 shares issued and outstanding at July 3, 2026 and December 31, 2025, respectively		109		111
Additional paid-in capital		2,483,251		2,466,177
Accumulated deficit		(2,114,668)		(2,076,406)
Accumulated other comprehensive loss		(8,346)		(6,636)
Total stockholders’ equity		360,346		383,246
Total liabilities and stockholders’ equity	$	632,645	$	718,483


	Three Months Ended				Six Months Ended
	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Revenue:
Appliance and integration	$	117,016	$	72,601	$	220,775	$	144,126
SaaS and service		16,446		14,317		34,382		27,670
Total net revenue		133,462		86,918		255,157		171,796
Cost of revenue:
Appliance and integration		56,413		41,652		107,271		74,086
SaaS and service		7,161		5,480		14,383		11,444
Total cost of revenue		63,574		47,132		121,654		85,530
Total gross profit		69,888		39,786		133,503		86,266
Operating expenses:
Research and development		21,199		17,992		42,080		37,656
Selling, general and administrative		24,630		20,483		46,915		40,263
Asset impairment and related charges		428		1,637		428		1,637
Restructuring and related charges		—		428		—		428
Total operating expenses		46,257		40,540		89,423		79,984
Income from operations		23,631		(754)		44,080		6,282
Interest expense, net		(1,082)		(1,090)		(2,161)		(2,401)
Other expense, net		(579)		(1,192)		(621)		(1,813)
Income before income taxes		21,970		(3,036)		41,298		2,068
Provision for income taxes		4,919		(2,179)		14,599		556
Income (loss) from continuing operations, net of tax		17,051		(857)		26,699		1,512
Income (loss) from discontinued operations, net of tax		(19,375)		3,728		(21,714)		7,299
Net income (loss)	$	(2,324)	$	2,871	$	4,985	$	8,811

Net income (loss) per share:
Basic:
Continuing operations	$	0.16	$	(0.01)	$	0.24	$	0.01
Discontinued operations		(0.18)		0.04		(0.19)		0.07
Basic net income (loss) per share	$	(0.02)	$	0.03	$	0.05	$	0.08

Diluted:
Continuing operations	$	0.16	$	(0.01)	$	0.24	$	0.01
Discontinued operations		(0.18)		0.04		(0.19)		0.07
Diluted net income (loss) per share	$	(0.02)	$	0.03	$	0.05	$	0.08

Weighted average common shares:
Basic		108,654		113,392		109,186		114,855
Diluted		109,682		113,392		110,176		115,256


	Three Months Ended July 3, 2026
	Common Stock			Additional Paid-in		Accumulated		Accumulated Other Comprehensive		Total Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Equity
Balance at April 3, 2026	108,478	$	108	$	2,475,698	$	(2,112,344)	$	(8,308)	$	355,154
Net loss	—		—		—		(2,324)		—		(2,324)
Other comprehensive loss, net of tax	—		—		—		—		(38)		(38)
Issuance of common stock under award and purchase plans, net	546		1		(643)		—		—		(642)
Stock-based compensation	—		—		8,196		—		—		8,196
Balance at July 3, 2026	109,024	$	109	$	2,483,251	$	(2,114,668)	$	(8,346)	$	360,346


	Three Months Ended June 27, 2025
	Common Stock			Additional Paid-in		Accumulated		Accumulated Other Comprehensive		Total Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Equity
Balance at March 28, 2025	114,679	$	115	$	2,442,010	$	(1,983,872)	$	(12,123)	$	446,130
Net income	—		—		—		2,871		—		2,871
Other comprehensive income, net of tax	—		—		—		—		5,159		5,159
Issuance of common stock under award and purchase plans, net	318		—		(655)		—		—		(655)
Repurchase of common stock	(1,608)		(2)		—		(14,021)		—		(14,023)
Excise tax on share repurchases	—		—		—		(171)		—		(171)
Stock-based compensation	—		—		7,091		—		—		7,091
Balance at June 27, 2025	113,389	$	113	$	2,448,446	$	(1,995,193)	$	(6,964)	$	446,402


	Six Months Ended July 3, 2026
	Common Stock			Additional Paid-in		Accumulated		Accumulated Other Comprehensive		Total Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Equity
Balance at December 31, 2025	111,186	$	111	$	2,466,177	$	(2,076,406)	$	(6,636)	$	383,246
Net income	—		—		—		4,985		—		4,985
Other comprehensive loss, net of tax	—		—		—		—		(1,710)		(1,710)
Issuance of common stock under award and purchase plans, net	2,058		2		(1,493)		—		—		(1,491)
Repurchase of common stock	(4,220)		(4)		—		(42,946)		—		(42,950)
Excise tax on share repurchases	—		—		—		(301)		—		(301)
Stock-based compensation	—		—		18,567		—		—		18,567
Balance at July 3, 2026	109,024	$	109	$	2,483,251	$	(2,114,668)	$	(8,346)	$	360,346


	Six Months Ended June 27, 2025
	Common Stock			Additional Paid-in		Accumulated		Accumulated Other Comprehensive		Total Stockholders’
	Shares	Amount		Capital		Deficit		Loss		Equity
Balance at December 31, 2024	116,735	$	117	$	2,432,733	$	(1,953,495)	$	(14,097)	$	465,258
Net income	—		—		—		8,811		—		8,811
Other comprehensive income, net of tax	—		—		—		—		7,133		7,133
Issuance of common stock under award and purchase plans, net	1,743		1		(151)		—		—		(150)
Repurchase of common stock	(5,089)		(5)		—		(50,097)		—		(50,102)
Excise tax on share repurchases	—		—		—		(412)		—		(412)
Stock-based compensation	—		—		15,864		—		—		15,864
Balance at June 27, 2025	113,389	$	113	$	2,448,446	$	(1,995,193)	$	(6,964)	$	446,402


(in thousands)	July 3, 2026		December 31, 2025
Assets
Accounts receivable, net	$	—	$	38,895
Inventories		—		23,890
Prepaids and other current assets		—		13,207
Property and equipment, net		—		1,296
Goodwill		—		123,479
Deferred income taxes, net		—		8,742
Other non-current assets		—		14,452
Assets held for sale	$	—	$	223,961

Liabilities
Current portion of other borrowings	$	—	$	5,605
Accounts payable		—		8,004
Deferred revenue		—		26,577
Other current liabilities		—		22,936
Other long-term borrowings		—		8,076
Other non-current liabilities		—		14,473
Liabilities to be disposed of	$	—	$	85,671


	As of
(in thousands)	July 3, 2026		December 31, 2025
Contract assets	$	1,742	$	1,959
Deferred revenue	$	22,664	$	33,006


Inventories:	As of
(in thousands)	July 3, 2026		December 31, 2025
Finished goods	$	42,300	$	32,430
Raw materials		18,626		8,452
Work-in-process		1,742		4,393
Service-related spares		3,805		2,565
Total	$	66,473	$	47,840


Property and equipment, net:	As of
(in thousands)	July 3, 2026		December 31, 2025
Machinery and equipment	$	65,420	$	76,971
Capitalized software		26,466		27,163
Leasehold improvements		24,790		25,336
Furniture and fixtures		2,385		2,569
Construction-in-progress		2,308		2,557
Property and equipment, gross		121,369		134,596
Less: accumulated depreciation and amortization		(97,891)		(108,948)
Total	$	23,478	$	25,648


Other current liabilities:	As of
(in thousands)	July 3, 2026		December 31, 2025
Accrued employee compensation and related expenses	$	14,335	$	13,560
Income tax payable		7,621		367
Accrued customer rebates		12,879		7,270
Accrued liabilities for excess and obsolete inventory		6,719		8,330
Other		26,408		18,761
Total	$	67,962	$	48,288


(in thousands, except per share amounts)	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Balance at December 31, 2025		4,135	$	10.36
Granted		1,723		8.99
Vested		(2,056)		10.30
Forfeited		(340)		10.03
Balance at July 3, 2026		3,462	$	9.75


	Six Months Ended
	July 3, 2026		June 27, 2025
Supplemental cash flow disclosure:
Income tax payments, net	$	4,914	$	13,764
Interest payments, net	$	2,162	$	2,715
Supplemental schedule of non-cash investing activities:
Capital expenditures incurred but not yet paid	$	591	$	1,141


	July 3, 2026								December 31, 2025
	Carrying		Fair Value						Carrying		Fair Value
(in thousands)	Value		Level 1		Level 2		Level 3		Value		Level 1		Level 2		Level 3
Long-term debt	$	110,611	$	—	$	110,611	$	—	$	112,084	$	—	$	112,084	$	—


Net revenue:	Three Months Ended				Six Months Ended
(in thousands)	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
United States (1)	$	113,364	$	70,016	$	210,579	$	132,206
Other countries (1)		20,098		16,902		44,578		39,590
Total	$	133,462	$	86,918	$	255,157	$	171,796

Americas	$	120,603	$	80,283	$	227,033	$	155,306
EMEA		8,421		5,776		18,880		14,396
APAC		4,438		859		9,244		2,094
Total	$	133,462	$	86,918	$	255,157	$	171,796


	Three Months Ended							Six Months Ended
(in thousands, except percentages)	July 3, 2026		June 27, 2025		Change			July 3, 2026		June 27, 2025		Change
Appliance and integration	$	117,016	$	72,601	$	44,415	61%	$	220,775	$	144,126	$	76,649	53%
as % of total net revenue		88%		84%					87%		84%
SaaS and service		16,446		14,317		2,129	15%		34,382		27,670		6,712	24%
as % of total net revenue		12%		16%					13%		16%
Total net revenue	$	133,462	$	86,918	$	46,544	54%	$	255,157	$	171,796	$	83,361	49%


Exhibit Number		Exhibit Index

2.1 (i)		Asset Purchase Agreement, dated March 20, 2026, by and between Harmonic Inc. and Leone Media Inc.*

31.1		Section 302 Certification of Principal Executive Officer

31.2		Section 302 Certification of Principal Financial Officer

32.1**		Section 906 Certification of Principal Executive Officer

32.2**		Section 906 Certification of Principal Financial Officer

101		The following materials from Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2026, formatted in Inline Extensible Business Reporting Language (iXBRL) include: (i) Condensed Consolidated Balance Sheets at July 3, 2026 and December 31, 2025, (ii) Condensed Consolidated Statements of Operations for the three and six months ended July 3, 2026 and June 27, 2025, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended July 3, 2026 and June 27, 2025 (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended July 3, 2026 and June 27, 2025, (v) Condensed Consolidated Statements of Cash Flows for the six months ended July 3, 2026 and June 27, 2025, and (vi) Notes to Condensed Consolidated Financial Statements.

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


HARMONIC INC.

By:	/s/ Walter Jankovic
	Walter Jankovic
	Title: Chief Financial Officer
	(Principal Financial Officer)
	Date: August 17, 2026